Skip to headerSkip to main contentSkip to footer
Get our Free E-newslettersGet our Free E-newsletters
Kiplinger logoLink to homepage
Get our Free E-newslettersGet our Free E-newsletters
Subscribe to Kiplinger
Subscribe to Kiplinger
Save up to 76%
Subscribe
Subscribe to Kiplinger
  • Store
  • Home
  • Investing
  • Retirement
  • Taxes
  • Personal Finance
  • Your Business
  • Wealth Creation
    • Podcasts
    • Economic Outlooks
    • Tools
    • Kiplinger's Personal Finance Magazine
    • The Kiplinger Letter
    • The Kiplinger Tax Letter
    • Kiplinger's Investing for Income
    • Kiplinger's Retirement Report
    • Store
    • Manage My E-Newsletters
    • My Subscriptions
Skip advert
  • Home
  • Smart Buying
Smart Buying

7 Smart Ways to Spend $100,000

Sitting on a significant stash of cash?

by: the editors of Kiplinger's Personal Finance
January 9, 2018

Getty Images

Skip advert

Sitting on a significant stash of cash? Maybe you’ve won the lottery, or inherited a small fortune, or sold a home or business for more money than you imagined. We suggest how to invest, spend and splurge with that money, plus ways to give back with it. Take a look.

  • 12 Smart Ways to Spend $1,000
  • 9 Smart Ways to Spend $10,000
Skip advert
Skip advert
Skip advert

1 of 7

Open an IRA, Get a Bonus

Getty Images

Skip advert

Move your IRA or open a new one and get an instant return on your money. If you open an IRA at TD Ameritrade and fund it with $100,000 within 60 days, you’ll get a $300 cash bonus (the offer is valid through March). Merrill Edge is giving out a slightly smaller bonus of $250 for a $100,000 IRA funded within 45 days of opening the account; there is no expiration date on the offer.

 

  • Best Online Brokers, 2017
Skip advert
Skip advert
Skip advert

2 of 7

Retire Early

Getty Images

Skip advert

Perhaps you have more in your retirement accounts than you counted on after the nearly nine-year bull market, or maybe you received an unexpected windfall when a relative passed away. An extra $100,000 may be enough to let you retire a year earlier than you originally planned without jeopardizing your retirement security. Estimate how much you’ll need for living expenses, such as food and utilities, and put enough money to cover those costs for a year in a savings account. That will allow you to postpone claiming Social Security benefits. You can file for benefits as early as age 62, but your payments will be reduced if you claim them before full retirement age, which is 66 for people born between 1943 and 1954.

Keep in mind that if you retire before age 65, you’ll need health insurance until you’re eligible for Medicare. Under COBRA, you may be able to continue coverage under your employer’s health insurance plan for up to 18 months if you pay the full cost of your coverage.

Skip advert
Skip advert
Skip advert

3 of 7

Help the Kids Buy a Home

Getty Images

Skip advert

If your child can’t qualify for a mortgage on his or her own, you could apply jointly for a mortgage as a “nonoccupant co-borrower” with an interest in the property. With a Fannie- or Freddie-backed mortgage, you and your child must put down at least 20% of the home’s purchase price; if you put down less, your child must ante up the first 5% from his or her own funds. But remember, if your child fails to pay the mortgage, property taxes or insurance on time, that could ding your credit history and result in a lien against the property. (If you exceed the gift-tax limit of $15,000 in 2018, you must file a gift-tax return.)

 

  • Time-Tested Tactics to Build Your Wealth
Skip advert
Skip advert
Skip advert

4 of 7

Buy a Camper Van

Getty Images

Skip advert

If you’re looking for adventure with a touch of luxury, $100,000 will get you a Mercedes Sprinter conversion van to serve as your home away from home. At Sportsmobile the oldest van conversion company in the U.S., you can get a 23-foot, high-roof Sprinter with a 6-cylinder diesel engine and all-wheel drive ($54,960).

The van gets 20 to 24 miles per gallon and is nimble enough to run errands around town. The standard plan for conversion costs about $46,000 and includes utility hookups for electricity and wastewater, a dinette that transforms into a queen-size bed or two twins, a bathroom, a galley kitchen and storage cabinets. You can select a layout that works best for you.

Skip advert
Skip advert
Skip advert

5 of 7

Buy an Off-the-Grid Cabin

Getty Images

Skip advert

You may not feel the need to prepare for a terrorist attack or socioeconomic collapse, but owning a retreat that’s off the beaten track—without electrical or cell-phone service or even plumbing—could serve either as a safe retreat during a natural disaster or as a rustic vacation getaway. In Montana’s Flathead Valley, you may find a small cabin on about an acre for $100,000, says Nikki Frizzell, an agent with Glacier Sotheby’s International Realty, in Bigfork.

 

  • 10 Great Tiny Homes for Retirees
Skip advert
Skip advert
Skip advert

6 of 7

Charter a Yacht

Getty Images

Skip advert

Forget packing your family onto a cruise with hundreds of other passengers. Instead, round up a group of friends or relatives (and share the cost) for a week aboard your own private yacht. You could book a boat that sleeps eight to 10 guests from Nicholson Yacht Charters & Services for a weeklong roam around Antigua for $65,000 to $70,000, including crew. My Zehava (from about $82,000), from Fraser, a yacht brokerage, sleeps 10 and focuses on the western Mediterranean.

 

  • Rent Luxury Cars or Boats
Skip advert
Skip advert
Skip advert

7 of 7

Run for Public Office

Getty Images

Skip advert

According to campaign finance data from the National Institute on Money in State Politics, 100 grand could pay for a city council bid in a large city. Besides voter files and mailers, you’ll have to buy digital and radio ads. If you attract enough contributions, you may be able to hire a pro to help for the campaign’s final push. An experienced campaign manager can cost as much as $20,000 a month.

Skip advert
Skip advert
Skip advert
  • annuities
  • buying a home
  • estate planning
  • family savings
  • leisure
  • how to save money
  • wealth management
  • spending
  • Smart Buying
Share via EmailShare on FacebookShare on TwitterShare on LinkedIn
Skip advert
Skip advert
Skip advert
Skip advert

Recommended

33 States with No Estate Taxes or Inheritance Taxes
retirement

33 States with No Estate Taxes or Inheritance Taxes

Even with the federal exemption from death taxes raised, retirees should pay more attention to estate taxes and inheritance taxes levied by states.
June 23, 2022
Best Banks for Higher-Net-Worth Clients
wealth management

Best Banks for Higher-Net-Worth Clients

Those who can meet high minimum-balance requirements at these banks get abundant account freebies and extras ranging from financial advice to event ac…
June 23, 2022
Marriage: When You’d Rather Not
estate planning

Marriage: When You’d Rather Not

Same-sex couples planning for a long-term commitment need to have the right estate planning documents in place, whether they are married or not.
June 16, 2022
Prepare for Painful Utility Bills, Gas Station Visits
spending

Prepare for Painful Utility Bills, Gas Station Visits

While brutal pump prices are dominating the headlines, consumers also are absorbing rapidly escalating utility bills.
June 14, 2022

Most Popular

The 15 Best Stocks for the Rest of 2022
stocks to buy

The 15 Best Stocks for the Rest of 2022

The lesson of the past two years: Be ready for anything. Our 15 best stocks to buy for the rest of 2022 reflect several possible outcomes for the seco…
June 21, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Retirement Comfort: How to Avoid Running Out of Money
retirement planning

Retirement Comfort: How to Avoid Running Out of Money

When it comes to retirement planning, one thing all of us worry about is whether we will have enough money to last. Financial professionals can help y…
June 25, 2022
  • Customer Service
  • About Us
  • Advertise With Us (PDF)
  • Privacy Policy
  • Cookie Policy
  • Kiplinger Careers
  • Accessibility
  • Privacy Preferences

Subscribe to Kiplinger's Personal Finance

Be a smarter, better informed investor.
Save up to 76%Subscribe to Kiplinger's Personal Finance
Do Not Sell My Information

Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site www.futureplc.com
© Future US LLC, 10th floor, 1100 13th Street NW, Washington, DC 20005. All rights reserved.

Follow us on InstagramFollow us on FacebookFollow us on TwitterConnect on LinkedInConnect on YouTube